Tag Archives: #ExpenseRecording

How do Wholesaler categorize and record expenses in their bookkeeping?

Record Expenses in Bookkeeping Wholesalers in India categorize and record expenses in their bookkeeping by following a systematic approach to accurately track their financial transactions. Here’s how they typically manage it: 1. Expense Categories: Wholesalers usually categorize their expenses into different categories based on their nature. Common expense categories include raw materials, transportation, salaries,… Read More »

How do YouTubers categorize and record expenses in their bookkeeping?

Balance Sheet Draft for YouTubers Financial Representation in a Balance Sheet

Bookkeeping for YouTubers Here’s how they do it: 1. Expense Categorization: YouTubers start by categorizing their expenses into relevant groups. Common categories include production costs, equipment purchases, marketing and promotion, software subscriptions, travel expenses, and any other business-related costs. This categorization helps them gain a clear overview of where their money is being… Read More »

Book keeping VS Accountancy?

Book keeping VS Accountancy Book keeping vs Accountancy difference: When it comes to managing a business’s finances, the terms “bookkeeping” and “accountancy” are often used interchangeably. However, they refer to different processes, both crucial to the financial health of an organization. Let’s break down the key differences between bookkeeping and accountancy in a simple… Read More »

Where do office expenses go in final accounts?

Office expenses Office expenses are typically classified as operating expenses and are included in the income statement of a company’s final accounts. Operating expenses are the day-to-day expenses incurred in the normal course of business operations, such as rent, utilities, office supplies, and salaries. These expenses subtract from the company’s revenue to arrive at its… Read More »

Why are prepaid expenses considered as personal account?

Prepaid Expenses It is considered as personal accounts in accounting because they represent an advance payment made by the business for goods or services. It will receive in the future. Personal accounts are those accounts that deal with individuals, firms or entities. That either indebts to the business or have lent money to the business.… Read More »

In accounting, why do we debit expenses and credit revenues?

Debit expenses and Credit revenues In accounting, we debit expenses and credit revenues because it follows the principle of double-entry bookkeeping. This principle states that every financial transaction has two equal and opposite effects: a debit entry and a credit entry. To visit- https://www.mca.gov.in/ Expenses always come in debit because they represent a decrease in… Read More »

What is the journal entry for rent paid?

Journal entry for rent paid The journal entry for rent paid depends on the method of payment. Here are some examples: Rent paid by cash: Debit Rent Expense Account Credit Cash/Bank Account Rent paid by cheque: Debit Rent Expense Account Credit Bank Account Rent paid in advance: Debit Prepaid Rent Account Credit Cash/Bank Account To… Read More »

What is nominal account?

Nominal Account In accounting, a nominal account is a general ledger account that is use to record revenues, expenses, gains, and losses for a specific accounting period. These accounts are also known as income statement accounts or temporary accounts. Because their balances are reset to zero at the end of each accounting period, typically a… Read More »

What are the functions of the accounts receivable?

The functions of the accounts receivable The functions of accounts receivable in accounting are as follows: 1.Recording Sales: Accounts receivable records the amount of money owed to a business by customers for goods or services sold on credit. It serves as a record of credit-based sales made by the business. 2.Payment Tracking: Accounts receivable tracks… Read More »

Do manufacturing expenses come under trading account?

Do manufacturing expenses come under trading account No, Manufacturing expenses are not included in the trading account, which is a component of a business’s final accounts used to determine the gross profit or loss. It includes all the direct expenses and revenues related to the purchase and sale of goods during a particular period. For… Read More »